Google to Acquire AdHawk Microsystems for $115 Million, Boosting Its Smart Glasses and AR Headset Ambitions

Google to Acquire AdHawk Microsystems for $115 Million, Boosting Its Smart Glasses and AR Headset Ambitions

AdHawk Microsystems, a burgeoning Canadian startup recognized for its innovative eye-tracking technology, is reportedly in acquisition talks with Google. Recent rumors suggest that the Mountain View tech giant is considering a substantial investment of $115 million to bring AdHawk into its fold. This potential acquisition appears to align with Google’s ambition to bolster its offerings in the smart glasses and augmented reality (AR) headset sectors, especially in light of competitive pressures from major players like Apple.

Contingent Deal Structure: $115 Million Acquisition with Performance Targets

An insider report from Bloomberg, credited to journalist Mark Gurman, reveals that Google’s proposed acquisition of AdHawk Microsystems includes a base payment of $115 million. This figure, however, features a component of $15 million that is contingent upon AdHawk meeting specific performance benchmarks. Such stipulations are customary in technology acquisitions, indicating that while the deal has potential, it is also fraught with uncertainty as startups often navigate challenges in achieving their objectives smoothly.

For Google, investing heavily in an eye-tracking startup signifies a renewed commitment to enhancing its smart glasses and AR headset initiatives. The company had ventured into the glasses market previously with Google Glass, which failed to resonate with consumers upon its launch in 2013. The expertise that AdHawk brings—specifically, its ability to support wireless tracking at 250Hz and tethered tracking at 500Hz—is invaluable. Its advanced micro-electromechanical systems eye tracker circumvents the necessity for conventional cameras, leading to elevated sampling rates, minimized latency, and lower energy usage.

These technological advancements position AdHawk Microsystems as a compelling enhancement to Google’s product lineup, particularly as the market shifts towards delivering a superior mixed-reality experience characterized by faster refresh rates and reduced latency. The eyes of the tech community are currently on Samsung’s Galaxy XR headset, or ‘Project Moohan, ’ which has recently demonstrated a hands-on experience running on Android XR. Should this acquisition proceed, there are high expectations for Google to unveil an equally impressive hardware iteration in its AR headset offerings.

According to reports, the finalization of this acquisition is anticipated within the week, making it crucial for stakeholders to remain attentive to forthcoming updates.

News Source: Bloomberg

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